July 19, 2024

Dolla Financial Services Limited (Dolla)

Unaudited financials for the six months ended June 30, 2024:

Dolla Financial Services Limited (Dolla) for the six months ended June 30, 2024, reported a 26% increase in Interest Income totalling $742.36 million compared to $588.26 million in the corresponding period last year. Interest Income for the second quarter had a 29% increase to close at $377.68 million compared to $293.62 million for the comparable quarter of 2023.

Interest Expenses amounted to $121.21 million (2023: $101.18 million), this represents an increase of 20% year over year. Consequently, net interest income increased by 27% to $622.56 million compared to $490.52 million for the six months ended June 30, 2023. The company booked net interest income of $318.31 million for the second quarter versus $242.39 million reported for the similar quarter of 2023.

Net Interest Income after Loan Impairment increased by 27% to close at $614.27 million (2023: $482.03 million), while Fees and Other Income decreased by 100% from $25.96 million in 2023 to $35,000 in the period under review. Also, foreign exchange losses for the six months ended June 30, 2024, amounted to $1.37 million, a 76% decrease relative to $5.67 million reported in 2023.

Consequently, Total Net Interest Income and Other Revenue for the six months ended June 30, 2024, amounted to $612.94 million, a 22% increase relative to $502.32 million reported in 2023. Total Net Interest Income and Other Revenue for the second quarter amounted to $313.00 million (2023: $253.17 million).

Administrative Expenses totalled $309.49 million, a 15% increase from the corresponding period last year. (2023: $269.91 million).

Profit before Taxation totalled $303.45 million a 31% increase from the corresponding period last year. (2023: $232.41 million).

Income Tax for the six months ended June 30, 2024, amounted to $19.40 million, a 270% increase relative to $5.25 million reported in 2023. As such, Net Profit for the six months ended June 30, 2024, had a 25% increase to reach $284.05 million (2023: $227.16 million). Net profit for the quarter amounted to $144.06 million (2023: $105.49 million).

Total Comprehensive Income for the six months amounted to $293.98 million, a 29% increase from the $227.34 million reported in 2023. For the second quarter, Total Comprehensive Income was $163.55 million (2023: $106.52 million).

Consequently, Earnings Per Share for the six months amounted to $0.11 (2023: EPS: $0.09), while Earnings Per Share for the quarter totalled $0.06 (2023: EPS: $0.04). The twelve month trailing EPS was $0.19 and the number of shares used in these calculations was 2,500,000,000.

Notably, Dolla’s stock price closed the trading period on July 18, 2024, at a price of $2.52 with a corresponding P/E ratio of 13.23x.

Balance Sheet Highlights

The company’s assets totalled $3.28 billion (2023: $2.82 billion). The growth in total assets was primarily driven by a $426.07 million or 17% increase in the company’s loan portfolio.

Shareholder’s equity was $1.16 billion (2023: $897.96 million), representing a book value per share of $0.46 (2023: $0.36).

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